Bank Reform Proposal in US

The sure win of special Senate election in Massachusetts state last week turned out to be a big surprise to the Democrats and of course a big headache to Obama. This state has been under Democratic Party for more than 50 years and was a true supporter of Obama's Adminstration. Since this election puts the Democrats in Senate under 60 votes, Obama is under big pressure in the latest proposal Medical Reform Bill that he once thought could push it through without major obstacles. The election in Massachusetts is amused by the public as a 50 后靚模 Martha Coakley who was wrong picked by the Democrats to lose out to a not a well known rival Republican Scott Brown. The last week proposal of bank reform was a political move of Obama to win back some of the public opinions after the defeat of this election. As we all know, the bonus issue of the big banks have posed a serious negative image on Wall streets and the Adminstration. People think the bankers are too greedy and should feel disgusting to get the bonuses. Their survival were not coming from their performance rather they are from the money of the taxpayers. Given the situation, Obama changed his stance to lean towards Volker who has been ignored since he took office and now back to the spot light again. Volker is in favor of heavy hands on Wall Street which is quite an opposite to Geithner who thought of otherwise. Volker suggested steps included to limit the size of the banks, disallowing banks to invest own funds in Hedge Funds and stop proprietary trading which all of them are not easy to implement. Unless other countries are going to follow the same, just unilateral action by US could only let the business to go away to their competitors-EURO and Asia.